Dutch gas company GasTerra said on Monday it is prepared to increase its gas deliveries by 10% to alleviate the ongoing gas crisis in Europe.
Speaking with Deutsche Presse-Agentur dpa, Ben Warner, spokesperson of the Dutch gas provider, confirmed GasTerra’s top manager Gertjan Lankhorst is currently in Brussels to discuss the terms of the extra gas deliveries.
GasTerra provides gas to several European countries, but the current extra gas would be delivered to Germany and Italy, together responsible for more than half of GasTerra’s annual export quotas.
European ministers of economic affairs and several European gas companies are meeting in Brussels on Monday to discuss the European Union’s request to Norway and The Netherlands to increase their respective gas production temporarily.
If an agreement is reached on Monday, GasTerra could be pumping the gas to Germany and Italy already on Tuesday, Warner said.
”Gas travels with speed of 50 to 70 kilometres per hour,” Warner said. ”It would arrive in Germany on Tuesday night and a little later in Italy, which is further away.”
Warner said European countries in the past had asked GasTerra for extra production sometimes during cold winters. But, he said, it is the first time the EU has made such a request of GasTerra.
”The EU’s solidarity pact prescribes that member states help each other in such situations if requested so by the EU,” Warner said.
The Netherlands boasts western Europe’s largest natural gas field, measuring about 900 square kilometres, located in the north-east province of Groningen. The gas field was discovered in 1959.
With 60% of the field’s resources already consumed and only an estimated 2,8-billion cubic metres of gas remaining, the Dutch have rationed their daily gas production for several years.
Last Wednesday Dutch Economic Affairs Minister Maria van der Hoeven had said the Dutch would not increase their gas production to alleviate the ongoing gas shortage in Europe.
But on Friday, Prime Minister Jan Peter Balkenende said that if requested so by the EU, the Dutch were able and willing to provide limited quota of 10% extra gas on a temporary basis.
”We cannot go beyond the 10%,” GasTerra’s Warner said. ”The Dutch Gasunie’s pipeline infrastructure could not transport more gas. Its capacity is also limited.”
One of the issues to be resolved in Brussels on Monday is who will pay the costs for the extra production.
”Gas companies usually order their cubic metres of gas up to several years ahead,” Warner explained.
”If we suddenly order extra capacity today, Gasunie will fine us. The EU has to decide who will pay those fines.”
In 2007 GasTerra sold 27,5-billion cubic metres of gas to the Dutch market, while exporting 50,4-billion cubic metres of gas. Of that, 37,3% went to Germany and 15,48% to Italy.
The remainder went to Belgium (14,09%), France (15,67%), Britain (16,27%) and Switzerland (1,19%). – Sapa-dpa